Power Finance Corporation532810Merger deal announced
RBI no objection certificate received for proposed scheme of merger; other approvals pending
The company has received a no objection certificate from the Reserve Bank of India for the proposed scheme of merger of REC Limited into it.
By ScoutQuest · · 2 min read
- NOC Received Date
- October 15, 2026
- NOC Issuing Authority
- Reserve Bank of India
- Board Approval Intimated Date
- June 28, 2026
Merger update: one regulatory clearance received
What the letter says
- The company has received a no objection certificate from the Reserve Bank of India on October 15, 2026.
- The NOC relates to the proposed scheme of merger of REC Limited (described as the Transferor Company) with and into Power Finance Corporation Limited (described as the Transferee Company), and their respective shareholders and creditors.
- The Scheme is proposed under sections 230-232 and other applicable provisions of the Companies Act, 2013.
- The no objection certificate is subject to the instructions/conditions specified in it.
Why this letter was shared
- The company had earlier informed, by its letter dated June 28, 2026, that the respective Boards of the Transferor Company and the Transferee Company had approved the Scheme.
- That Board approval was subject to receipt of applicable regulatory and other approvals.
What the company says is still pending
- The Scheme remains subject to other statutory and regulatory approvals.
- Fulfilment of other conditions to the effectiveness of the Scheme.
- The approval of the respective shareholders and creditors of the companies involved in the Scheme, as may be required under applicable laws and the provisions of the Scheme.
How a retail investor can read this
- A no objection certificate is a clearance from one regulator. It allows the process to move to the next stage; it does not by itself complete or give effect to the merger.
- In a merger of this type, the Transferor Company is merged into the Transferee Company as per the Scheme.
- The company has stated that the Scheme will become effective only after the remaining approvals are received and the other conditions mentioned are fulfilled.
- In simple terms: this is a step forward in the approval chain, and the company has itself said the Scheme is still not effective.
Terms used in the letter, in plain words
- No objection certificate: a regulator saying it has no objection to the transaction going ahead on the terms and conditions it has set.
- Transferor Company: the company being merged into another.
- Transferee Company: the company into which the other is merged.
Also from Power Finance Corporation
Subsidiary incorporates Khushkhera Transmission Ltd as wholly owned SPV for Rajasthan transmission project
24 Oct 2026
Two wholly owned transmission SPVs incorporated for tariff-based bidding process
23 Oct 2026
PFC Consulting incorporates Northern Region Power Transmission as a wholly owned SPV
22 Oct 2026
Source: BSE · 15 Oct 2026
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